Providing elder law and estate planning services to the Walnut Creek, CA area. By elder law attorney, Michael J. Young

A property tax re-assessment of the home in a transfer from a parent to a child can be avoided under California Proposition 58. For instance, when a probate is closed and the home is transferred to a child, or if the home is transferred to a child through trust administration, we can complete the “Claim For Reassessment Exclusion For Transfer Between Parent To Child.” If accepted by the assessor, the child who receives title to the real property through probate or the trust, can retain the parents’ old tax basis. Under Proposition 58, a son, daughter, child adopted before the age of 18, son-in-law, daughter–in-law and step-child, can be identified as the child. This re-assessment exclusion can be very valuable. For instance, the parents may have purchased their home some years ago for $85,000, and then leave their home to their daughter through probate or trust administration. When the parents die, their home could be worth $1,000,000. By utilizing Proposition 58, after the close of probate or trust administration, the daughter should be able to continue to pay property tax on the parents’ original tax basis of $85,000.

This information is not to be taken as legal advice, and you are encouraged to see your Walnut Creek Probate Attorney, Michael J. Young.